Brazil plans to tax cryptocurrency international transfers

Brazil is considering introducing a tax on the use of cryptocurrencies for certain transactions, including stablecoins. This initiative has arisen amid the rapid growth of the cryptocurrency market and classic financial transactions. The government is planning to expand the scope of the financial transaction tax (IOF) to cover international transfers with virtual assets, which are currently not subject to taxation. According to new legislative initiatives, the use of stablecoins should be controlled to avoid regulatory arbitrage between traditional currencies and cryptocurrencies.

Source Incrypted

According to the Federal Tax Service of Brazil, the volume of crypto transactions in the country in the first half of 2025 amounted to about 227 billion reais (about 42.8 billion dollars), which is 20% more than in 2024. About two-thirds of this amount is accounted for by transactions with stablecoins such as USDT. The planned innovations may allow the state to receive additional tax revenues, as in recent years, Brazil has been losing more than $30 billion annually due to non-payment of taxes on cryptocurrency transactions.

According to the new rules, which will come into effect in 2026, any transaction involving the purchase, sale, or exchange of stablecoins will be considered a foreign exchange transaction. This will also apply to international payments, fulfillment of card obligations, and transactions with non-custodial wallets. This initiative comes amid broader discussions about the role of cryptocurrencies in the country's financial system, as Brazil is actively developing new legislation to regulate financial relations in this sector.